Professional Documents
Culture Documents
Selection decision
False positive error A decision is made to hire an applicant based on predicted success, but failure
results.
False negative error An applicant who would have succeeded is rejected based on predictive of
failure.
Preliminary interview Helps reject misfits for reasons , which did not appear in the application
forms. It can also be called as courtesy interview.
Bernsenter Personality
It measures one’s self efficiency , neurotic tendency , sociablility, introversion
Iventory extroversion , locus of control and self confidence.
Reliability Refers to standardisation of the procedure of administering and scoring the test
results.
Concurrent validity This involves determining the factors that are characteristics of successful
employees and then using these factors as the yardsticks.
Predictive validity This involves using a selection test during the selection process and then identi-
fying the successful candidates .
Synthetic validity This involves taking parts of several similar jobs rather than one complete job to
validate the selection test.
Sequential interview It takes the one to one step further and involves a series of interviews, usually
utilizing the strength and knowledge base of each interviewer, so that each inter-
viewer can ask questions in relation to his or her subject area of each candidate,
as the candidate moves from room to room.
Contract of employment The basic information that should be included in a written contract of employ-
ment which will vary according to the level of the job.
No show These are the individuals who pass through the selection rigour, receive emplo-
yment offers , but fail to report to duties.
HUMAN RESOURCE RELATED NEW TERMS
Assessment centre An assessment centre is not a physical location but an approach to selecting
managers based on measuring and evaluating their ability to perform critical
tasks.
Serial orientation Orientation becomes serial when an experienced employee acts as a tutor and
model for the new hire.
Disjunctive orientation Such induction is likely to produce more inventive and creative employees be-
cause the new hire is not burdened by tradition.
Investiture orientation It seeks to ratify the usefulness of the characteristic s that the person brings to
The new job.
Divestiture orientation It seeks to make minor modification in the characteristics of the new hire, albeit
he or she was selected based on his or her potential for performance.
Independent jobs In such situations , the activities of one worker have little bearing on the activ-
ities of other worker.
Sequential jobs Activities of one worker are dependent on the activities of a fellow worker .
Pooled jobs There is a high interdependence among activities . The final ouput is the result
Of contribution of all the workers.
Assessment classification In this model , details about the employee’s skills interests , past performance
Model and biological details are collected .
Tasks and KSA analysis This assessment helps prepare a blueprint that describes the KSA’s to be
achieved upon completion of the training programme.
Sensitivity training Sensitivity training uses small numbers of trainees, usually fewer 12 ina group.
They meet with a passive trainer and gain insights into their own and other’s
behavior.
Executive coaching Executive coaching is organized to help out a star performer who has risen to
the top and suddenly finds himself/herself trapped amidst official chores and
finds little time to attend to personal things.
Absolute Ratings A rating method where the rater assigns a specific value on a fixed scale to
the behavior or performance of an individual instead of assigning ratings
based on comparisons between other individuals.
Autocratic Leadership Leader determines policy of the organisation, instructs members what to
do/make, subjective in approach, aloof and impersonal.
Balanced Scorecard A popular strategic management concept developed in the early 1990's by
Drs. Robert Kaplan and David Norton,
the balanced scorecard is a management and measurement system which
enables organisations to clarify their vision
and strategy and translate them into action. The goal of the balanced
scorecard is to tie business performance to organisational strategy
by measuring results in four areas: financial performance, customer
knowledge, internal business processes, and learning and growth.
Behavioural The behaviour of the employee which is the subject of measurement and
Competency appraisal in terms of whether or not the behaviours
shown by an employee are those identified by job analysis/competency
profiling as those contributing to team and/or organisational success.
Bereavement Leave Secton 69 to 72 of the Holidays Act 2003 provides a specific number of paid
days off following the death of an employee’s spouse, parent,
child grandparent or in-law so that the employee may attend funeral
proceedings, etc.
Broadbanding A pay structure that consolidates a large number of narrower pay grades
into fewer broad bands with wider salary range.
Bumping The practice of allowing more senior level employees whose positions have
been slotted for elimination or downsizing the option of
accepting an alternative position within the organisation, for which they
may be qualified to perform and which is currently occupied by another
employee with less seniority.
Change Management The deliberate effort of an organisation to anticipate change and to manage
its introduction, implementation, and consequences.
HUMAN RESOURCE RELATED NEW TERMS
Clean Slate The Criminal Records (Clean Slate) Act 2004 establishes a clean slate
scheme to limit the effect of an individual's
convictions in most circumstances (subject to certain exceptions set out in
Section 19) if the individual satisfies the relevant eligibility criteria.
Collective Bargaining The process by which [an] employer[s] will negotiate employment contracts
with [a] union[s].
Common law Decisions of the Courts also known as Precedent. Distinguished from
Legislation.
Compensation Compensation for injury to an employee arising out of and in the course of
employment that is paid to the worker or dependents
by an employer whose strict liability for such compensation is established
by statute.
Where established by statute, workers' compensation is generally the
exclusive remedy for injuries arising from employment,
with some exceptions. Workers' compensation statutes commonly include
explicit exclusions for injury caused intentionally,
by willful misconduct, and by voluntary intoxication from alcohol or illegal
drugs.
Competencies ‘An underlying characteristic of a person’ ‘motive, trait, skill, aspect of one’s
self-image or social role, or a body of knowledge’.
Contingent workers Employees who may be: casual labour, part-timers, freelancers,
subcontractors, independent professionals and consultants.
Core competencies The skills, knowledge and abilities which employees must possess in order
to successfully perform job functions which are essential to business
operations.
Core Labour Force A small group of permanent workers, for example, strategists, planners.
Critical incidents A method of avoiding the subjective judgements which are the feature of
most ranking and rating systems. It is the keeping,
by management, of a record of on-job incidents or behaviours which may
be examples of [in]effective behaviour and used as
background information for subsequent discussions and performance
appraisals.
Customer capital The relationships an organisation has with the people it does business with,
HUMAN RESOURCE RELATED NEW TERMS
including suppliers, ‘brand equity’ and ‘goodwill’. See also Structural
capital.
Decision Tree Model One of the Contingency theories of leadership – developed by Vroom and
Yettor (1973).
Deregulation The removal of entities such as financial markets, road and transport from
governmental control.
Dual Labour Markets Organisations will operate with a small Core Labour Force and a Peripheral
Labour Force.
E-commerce The use of the internet to market and sell goods and services
Employee Relations A broad term used to refer to the general management and planning of
activities related to
developing, maintaining, and improving employee relationships by
communicating with employees,
processing grievances/disputes, etc.
Employee retention Organisational policies and practices designed to meet the diverse needs of
employees, and create an environment
that encourages employees to remain employed.
Employment New body to be set up under Section 156 of the Employment Relations Act
Relations Authority
2000 which replaces the Employment Tribunal.
HUMAN RESOURCE RELATED NEW TERMS
Empowerment The process of enabling or authorising an individual to think, behave, take
action, and control work and decision-making in autonomous ways.
Ergonomics The measurement of physical characteristics of the human body and the
development of equipment to fit them, so that strain on the body is
reduced.
Equity theory Based on the notion that people are motivated by a desire for fairness, that
is, to be treated fairly and will compare their
own efforts and the rewards of others in the organisation with a view to
judging the fairness of their treatment.
Extrinsic rewards Two forms : Money and non-money rewards. Examples : job enrichment,
job enlargement, personal and working relationships with colleagues and
supervisors and managers.
Fixed Term An employee and an employer may agree that the employment of the
Employment
employee will end at the close of a specified date or period or on the
occurrence
of a specified event or at the conclusion of a specified project. See Section
56 of the Employment Relations Act 2000.
Freedom of The right to belong to a union. As protected by the Human Rights Act 1993.
association
Functional job The preparation required for the construction of a job description. It is
analysis
necessary to collect data on the job to be advertised.
Generations Baby Boomers –The term used to describe those individuals born between
1945 and 1970.
Generation X - The term used to describe individuals born between 1965
HUMAN RESOURCE RELATED NEW TERMS
and 1980.
Generation Y - The term used to describe individuals born between 1985
and the present.
Generation I - The term used to describe children born after 1994 that are
growing up in the Internet age.
Goal Setting The process of setting and assigning a set of specific and attainable goals to
be met by an individual, group or organisation.
Good faith bargaining A duty under Section 4 of the Employment Relations Act 2000 to conduct
negotiations where two parties meet and confer at reasonable times
with open minds and the intention of reaching an agreement.
Group dynamics The social manner in which people interact with each other within a group.
Gross misconduct An act committed by any personnel likely to lead to Summary Dismissal.
HR planning The activity of planning human resources usually in connection with the
overall strategic planning of the organisation.
Incentive pay Additional compensation used to motivate and to reward employees for
exceeding performance or productivity goals.
Independent A person who works for him/herself but has a contract for services with
contractor
another person/organisation.
Individual The legal relationship between an employee and employer. See Part 6 of
employment the Employment Relations Act 2000.
agreement
Industrial relations The study of theories and practices in the workplace relationship.
International Labour An organisation set up by the United Nations to establish, amongst other
Organisation matters, conventions on practices in the workplace.
Job Description A written description of a job which includes information regarding the
general nature of the work to be performed,
specific responsibilities and duties, and the employee characteristics
required to perform the job.
Job evaluation Used for compensation planning purposes, it is the process of comparing a
job with other jobs in an organisation
to determine an appropriate pay rate for the job.
Key Result areas Used to establish standards and objectives, key result areas are the chief
tasks of a job identified during the job evaluation process.
KSAs Knowledge, skills and abilities – the personal attributes that a person has to
have to perform the job requirements.
Labour Market A geographical or occupational area in which factors of supply and demand
interact.
Labour force mobility The willingness of potential employees to travel or move to where work is
offered.
Labour force A rate at which the number of people in the labour force is divided by the
participation number of people of working age x 100.
HUMAN RESOURCE RELATED NEW TERMS
Leadership The process, by which an individual determines direction, influences a
group and directs them toward a specific goal or organisational mission.
LIFO In the event of a redundancy situation occurring, the system of ‘last in first
out’ is regarded as the most equitable method of choosing those who
should be made redundant.
Lump sum payment A fixed negotiated payment which is not typically included in an employee’s
annual salary. Often times given in lieu of pay increases.
Matrix organisation An organisational structure where employees report to more then one
manager or supervisor.
Mission Statement A statement illustrating who the company is, what the company does, and
where the company is headed.
Motivation The reason(s) why a person works at a particular job and for a particular
organisation. Subject to various theories relating to the way they do things.
HUMAN RESOURCE RELATED NEW TERMS
Motivational theories An attempt to explain how people are motivated, in the form of work
behaviour and performance.
Mutuality of interests Relating to Performance Management. Both employer and employee have
a mutual interest in achieving organisational objectives.
Negotiation The process of discussion with a view to mutual settlement usually by the
means of a conference.
Observation interview The process of observing employees while performing their respective jobs
or tasks used to collect data regarding specific jobs or tasks.
Onboarding A relatively new term, it is more far reaching than historical orientation
programmes. It links new employees with team members very early in the
employment process and continuing after the traditional orientation
programme ends.
OSH Occupational health and safety – the law relating to the health and safety
of personnel at work.
Organisational A pattern that emerges from the interlocking system of the beliefs, values
Culture
and behavioural expectations of all the members of an organisation.
Organisational The scientific management movement and human relations school were
theories two early organisational theories. Both had impact on the development of
human resources management.
Paid Parental Leave Supported by legislation allowing [possibly later in 2000] 12 weeks paid
leave which a new mother may share with her partner, funded by a payroll
levy.
Pareto chart A bar graph used to rank in order of importance information such as causes
or reasons for specific problems so that measures for process improvement
can be established.
Pay Base pay is the fixed salary or wage which constitutes ‘the rate for the job’.
It may be the only money remuneration an employee receives.
Peripheral Labour Employees less critical to organisational success and can be expendable.
Force
Quality management The process or system of ensuring that a product or service should do what
the user needs or wants and has a right to expect.
There are five dimensions to quality, design, conformance, availability,
safety and field use.
Random Testing Drug and alcohol tests administered by an employer which selects
employees to be tested on a random basis.
Recruitment The process of bringing into an organisation personnel who will possess the
appropriate education, qualifications, skills and experience for the post
offered.
Redundancy The act of dismissing an employee when that employee is surplus to the
requirements of the organisation.
Replacement charts A summarisation in visual form the numbers of incumbents in each job or
family of jobs, the number of current vacancies per job
HUMAN RESOURCE RELATED NEW TERMS
and the projected future vacancies. See Succession planning.
Remuneration Remuneration includes any payment made under a contract for services.
Request for proposal A document an organisation sends to a vendor inviting the vendor to
(RFP) submit a bid for a product or, service.
Restrictive covenant A contract clause requiring executives or other highly skilled employees to
refrain from seeking and obtaining employment with
competitor organisations in a specific geographical region and for a
specified period of time.
Return on investment A ratio of the benefit or profit derived from a specific investment compared
(ROI) to the cost of the investment itself.
Right to manage The ‘right’ of management to make decisions and to run an organisation
without interference from external or internal forces.
Risk management The use of insurance and other strategies in an effort to minimize an
organisation’s exposure to liability in the event a loss or injury occurs.
Scalar chain A concept from the French industrialist Henri Fayol who established the
concept of unity of command
[‘ and employee should receive orders from one superior only ’] and scalar
chain [‘ the chain of superiors ranging
from the ultimate authority to the lowest ranks………the line of authority
followed by all communications ’].
Salary Is a term used most commonly to describe a base pay which is set at an
annual rate and remains unchanged from one
pay period to the next, regardless of the number of hours an employee may
work.
Selection ratio The ratio of the number of people hired to the number of suitably qualified
candidates obtained.
HUMAN RESOURCE RELATED NEW TERMS
Six Sigma Six Sigma is a disciplined, data-driven methodology used to eliminate
defects and improve processes and
cut costs from manufacturing to transactional and from product to service.
Stakeholders The term given to the situation whereby firms have a number of groups,
each having their own set of interests, possibly conflicting with each other.
Strategic HRM The process of aligning human resources more closely to the strategic and
operating objectives of the organisation.
Strategic Planning The process of identifying an organisation's long-term goals and objectives
and then determining the best approach for achieving those goals and
objectives.
Structural capital The databases, customer files, manuals, trademarks etc that remain in a
firm once employees go home. See Customers capital.
Summary dismissal The act of dismissing personnel immediately, usually because the person
has committed some act of Gross Misconduct.
Tangible rewards Rewards which can be physically touched or held (i.e. a gift certificate, gifts
in the form of merchandise, or a savings bond).
Theory X & theory Y Two conflicting assumptions which are behind thinking on human nature
HUMAN RESOURCE RELATED NEW TERMS
and human behaviour as related to the employee and the workplace.
Total Remuneration The complete pay package awarded employees on an annual basis,
including all forms of money, benefits, services, and in-kind payments.
Training Needs A method of analysing how employee skill deficits can be addressed
Analysis through current or future training and professional development
programs, as well as determining the types of training/development
programs required, and how to prioritise training/development.
Turnover Describes changes in the work force resulting from voluntary or involuntary
resignations.
Wage curve Depicts pay rates currently being paid for each job within a pay grade in
relation with the rankings awarded to each
job during the job evaluation process.
Wages Wages – is a term used most commonly to describe a base pay which is
HUMAN RESOURCE RELATED NEW TERMS
calculated on a hourly, daily or weekly basis.
Depending on whether the employment is permanent, temporary or casual,
full time or part-time basis, or according to the requirements
of the applicable employment agreement. The amount of wages will vary
(usually) according to the number of hours the employee works.
Wage drift The gap between the Collective Agreement rate and the rate actually paid.
Evidence of geographical variations in wage levels.
Work-life Balance Having a measure of control over when, where and how an individuals
works, leading to their being able to enjoy an optimal quality of life.
Work-life balance is achieved when an individual’s right to a fulfilled life
inside and outside paid work is accepted and respected as the norm,
to the mutual benefit of the individual, business and society.